How Government Policies Have Driven the Growth of Textile Industry in India in the Last 10 Years

 the growth of textile industry in India in the last 10 years has been fueled by a comprehensive blend of government schemes, innovation, and sector-specific infrastructure.

Introduction

The growth of textile industry in India in the last 10 years has been a remarkable journey of transformation. Once rooted primarily in traditional practices, the industry has evolved into a global manufacturing hub thanks to proactive and forward-looking government policies. From handloom empowerment to high-tech textiles and export promotion, the Indian government has played a central role in this transition.

This blog explores in detail how strategic government initiatives have fueled the growth of textile industry in India in the last 10 years, turning it into one of the fastest-growing sectors in the country.


1. The Role of the PLI Scheme in Boosting Textile Production

One of the most impactful schemes contributing to the growth of textile industry in India in the last 10 years is the Production Linked Incentive (PLI) scheme for textiles.

Key Highlights:

  • Offers 3% to 15% incentives on incremental sales of MMF and technical textile products.
  • Promotes foreign direct investment in the sector.
  • Estimated to create 7.5 lakh+ new jobs and increase exports by billions.

The PLI scheme not only improved production but positioned India as a viable alternative to China and Vietnam in textile exports.


2. SAATHI: Driving Sustainable and Energy-Efficient Growth

Sustainability is now a core pillar in the growth of textile industry in India in the last 10 years. The SAATHI initiative (Sustainable and Accelerated Adoption of Efficient Textile Technologies to Help Small Industries) plays a vital role in achieving this.

Benefits of SAATHI:

  • Encouraged adoption of modern, energy-efficient machinery among small manufacturers.
  • Reduced carbon emissions and environmental footprint.
  • Lowered production costs through energy savings.

This initiative supports long-term, green growth in the textile sector.


3. National Technical Textiles Mission: Future-Proofing the Industry

The National Technical Textiles Mission (NTTM), launched in 2020, has been a game-changer in the growth of textile industry in India in the last 10 years, particularly in the high-performance fabrics segment.

Mission Goals:

  • Promote innovation in healthcare, defense, and industrial textiles.
  • Develop Centers of Excellence for testing and training.
  • Increase domestic production and export of technical textiles.

NTTM has elevated India’s technical textile capabilities and contributed to the shift from volume-based to value-based manufacturing.


4. Make in India + Skill India = A Skilled Textile Workforce

The Make in India and Skill India campaigns have worked in tandem to foster indigenous manufacturing and build a skilled labor force. These efforts have contributed significantly to the growth of textile industry in India in the last 10 years.

Outcomes:

  • Over 1.5 million textile workers trained under the Integrated Skill Development Scheme (ISDS).
  • Creation of regional textile clusters in Tamil Nadu, Gujarat, and Maharashtra.
  • Improved productivity and product quality, enhancing India’s global competitiveness.

A skilled and tech-savvy workforce is key to sustaining the momentum in the textile industry’s growth.


5. Infrastructure and Export-Led Growth

Government support for infrastructure and exports has directly impacted the growth of textile industry in India in the last 10 years.

Key Programs:

  • PM MITRA Parks: Mega integrated textile parks offering plug-and-play infrastructure.
  • RoDTEP Scheme: Refund of taxes and duties for exported goods.
  • Streamlined GST regime for SMEs, especially in fabric and garment manufacturing.

These measures have lowered barriers to entry, improved ease of doing business, and helped Indian textiles compete on the global stage.


6. Revival of Traditional Textiles and Handlooms

The growth of textile industry in India in the last 10 years also includes a renewed focus on preserving and promoting traditional crafts.

Initiatives:

  • National Handloom Development Programme (NHDP) to support artisan communities.
  • e-Dhaga App for real-time access to raw materials.
  • Promotion of the Handloom Mark to ensure authenticity.

India’s cultural heritage has become a valuable economic asset through focused government support.


7. Focus on MSMEs and Rural Employment

Micro, Small, and Medium Enterprises (MSMEs) have been at the heart of the growth of textile industry in India in the last 10 years. Special subsidies, credit support, and digital tools have empowered thousands of small units across the country.

Results:

  • Enhanced rural employment, especially among women.
  • Digital tools like GeM (Government eMarketplace) to access bulk orders.
  • Integration of traditional artisans into the formal economy.

The support for grassroots entrepreneurship ensures inclusive growth across the entire value chain.


Conclusion

In conclusion, the growth of textile industry in India in the last 10 years has been fueled by a comprehensive blend of government schemes, innovation, and sector-specific infrastructure. From large-scale initiatives like the PLI and PM MITRA to focused efforts for handlooms and MSMEs, the policy ecosystem has created a robust foundation for sustainable and scalable growth.

As global demand shifts towards sustainability and innovation, India’s textile sector — empowered by policy — is well-positioned to lead the world in both quality and quantity. With continued government support and public-private collaboration, the next decade could see India emerge as the undisputed leader in global textiles.

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